Congonhas manages to absorb airports that would be auctioned with Santos Dumont, says secretary

The block of airports led by Congonhas, in São Paulo, has the financial capacity to absorb the three mining terminals that would go to auction with Santos Dumont, in Rio de Janeiro, defended this Tuesday (1st) the national secretary of Civil Aviation of the Ministry of Infrastructure, Ronei Glanzmann.

Congonhas and Santos Dumont are considered the crown jewels of the seventh round of airport concessions, scheduled by the federal government for the first half of this year.

In a nod to politicians and businessmen from Rio de Janeiro, the Ministry of Infrastructure reported on Monday (31) that Santos Dumont will be auctioned alone, and not in a block with the Minas Gerais terminals of Montes Claros, Uberlândia and Uberaba, in addition to the airport of Jacarepaguá (RJ).

With that, there was a redesign of the disputed lots, and the Minas trio was added to the group led by Congonhas. The block captained by the São Paulo terminal already had airports in Mato Grosso do Sul and Pará —Campo Grande (MS), Corumbá (MS), Ponta Porã (MS), Santarém (PA), Marabá (PA), Carajás (PA) and Altamira (PA).

“The Ministry of Infrastructure (Minfra) carries out a study of each airport, individually, and for each asset it identifies the net present value, free cash flow of the airport, investment forecast, income and expenses”, stated Glanzmann in a note sent to leaf.

“So, based on this public policy strategy, Minfra identified that the block that includes Congonhas airport has a net present value to absorb the airports in the state of Minas Gerais”, he added.

For economist Gesner Oliveira, a partner at GO Associados, the inclusion of the three Minas Gerais airports does not make the Congonhas block any less attractive.

“In this case, we are talking about economically very dynamic regions. The bloc still takes a very strong axis”, says Oliveira, who also coordinates the Center for Infrastructure Studies and Environmental Solutions at FGV (Fundação Getulio Vargas).

The redesign of the seventh round blocks came after the Santos Dumont concession model became the target of an impasse and exchange of barbs.

In Rio, the separation of the terminal in the dispute is seen as an attempt by the federal government to dialogue with the state and calm tempers.

The measure, however, did not eliminate the main point of contention in the concession, which is the possibility of expanding flights on Santos Dumont.

Leaders from Rio de Janeiro believe that a large increase in supply, after the auction, would put the operations of Galeão International Airport, also located in Rio, in check.

The assessment is that there would be a chance of cannibalization between the ventures, which could make it even more difficult to resume Galeão in the post-pandemic period.

Initially, the federal government was in favor of expanding flights on Santos Dumont.

“The inclusion of the three Minas Gerais airports in the block would bring the need for more investments to the future concessionaire. This would generate pressure to bring a greater number of flights to Santos Dumont”, he said on Monday (31) to leaf the municipal secretary of Economic Development, Innovation and Simplification of Rio, Chicão Bulhões.

“The withdrawal is positive, but the modeling will need to be discussed in the working group”, he added.

The seventh round of concessions involves 16 airports. The Ministry of Infrastructure projects investments of around R$ 8.63 billion. Before redesigning the event, the assets would be distributed in three lots. Now there are four.

According to the original public notice, Congonhas would also have the Campo de Marte (SP) terminal on its block. This venture was joined to a new lot, dedicated to executive aviation, with Jacarepaguá. Previously, the Rio de Janeiro terminal was part of the Santos Dumont group.

“the two airports [Campo de Marte e Jacarepaguá] have unique characteristics. These are airports aimed at executive aviation, with great potential for real estate exploration, which results in a high market value for investors. The blocks were designed in this sense”, says Secretary Glanzmann.

The North II block, formed by Belém (PA) and Macapá (AP), had no changes. The changes announced by the federal government still need to be analyzed by the TCU (Union Court of Auditors).

The dispute in Rio

Less than 20 kilometers separate Santos Dumont from Galeão. Politicians and businessmen from Rio de Janeiro believe that Santos Dumont has the potential to attract domestic flights, but suffers from geographical limitations in downtown Rio.

Galeão is located on Ilha do Governador, far from other neighborhoods in the metropolitan region, whose road connection is the Linha Vermelha, a frequent location for traffic and shootings. The terminal was planned to receive large aircraft and plays an important role in cargo logistics in the state.

Economist Gesner Oliveira, from GO Associados, believes that the battle created around the Santos Dumont concession should not alienate private interest.

“There is always resistance in concession processes. I do not believe that this reduces the appetite of investors, especially as it is a market that is very underdeveloped in Brazil”, he points out.